Full Text: Report on the Work of the Government (8)

Third, we need to nurture and hasten the birth of a new force for driving economic and social development.

As the force that has traditionally driven economic growth is weakening, it is imperative that we intensify structural reform, boost efforts to implement the strategy of pursuing innovation-driven development, and upgrade traditional engines while creating new ones for driving development.

We will increase the supply of public goods and services, increase government input in areas like education and health care, and encourage nongovernmental participation to improve the efficiency of supply. This will bolster weak spots and benefit the people, as well as increase demand and promote development.

At the same time, we will also encourage people to start their own businesses and to make innovations, which will not only create more jobs and increase personal incomes, but also improve upwards social mobility and social equity and justice.

China has a population of 1.3 billion and a workforce of 900 million. Our people are hardworking and talented, and there is no limit to their ingenuity. When an abundance of market cells spring into life, they will form a mighty driving force for development, ensuring China' s economy remains resilient in spite of the downward pressure on it, and continues to be full of life and dynamism. The government should be bold in imposing a reform on itself so as to leave ample space for the market and society to play their respective roles and level the playing field for fair competition. Individuals and enterprises must have the mettle to promote their business development and make innovations, and our society needs to nurture a culture of entrepreneurship and innovation. In this way, while creating wealth, people will be able to meet their cultural and intellectual needs and realize their full potential in life.

This year is the final year for completing the 12th Five-Year Plan. As we strive to accomplish the tasks and objectives for economic and social development set forth in this plan, we need to formulate the 13th Five-Year Plan, bringing to this work the spirit of reform and innovation and adopting a scientific approach.

III. Deepening Reform and Opening Up

Reform and opening up is crucial for driving development. We must focus on economic structural reform as we comprehensively deepen reform, taking all things into consideration in planning, working solidly to deliver concrete results, making new breakthroughs in areas that can boost development as a whole, and strengthening new momentum to drive development.

We will do more to streamline administration and delegate more powers to lower-level governments and to society in general while improving regulation.

This year, we will delegate the power or cancel the requirement for government review for more items, cancel all non-administrative review, and establish a system for exercising well-regulated management over the government review process. We will deepen reform of the business system; further simplify the process for capital registration; take gradual steps to integrate the business license, the organization code certificate, and the certificate of taxation registration into one certificate; and overhaul and regulate intermediary services. We will draw up a negative list for market access, ensure that provincial-level governments make their lists of powers and responsibilities open to the public, and make sure that anything the law does not authorize is not done, while all duties and functions assigned by law are performed.

Local governments must completely let go of powers that should be delegated to the market or society, and properly exercise the power of review over all items that have been delegated to them by higher-level governments. We will exercise stronger oversight both during and after the handling of matters, and improve the network of services for both enterprises and the general public. We will work to improve the credit rating system, put in place a national unified system of codes for rating credit, and establish a platform for sharing and exchanging information on credit. We will, in accordance with the law, protect the information security of enterprises and individuals.

It goes without saying that powers should not be held without good reason. Governments at all levels need to adopt effective ways to streamline administration, delegate powers, and transform their functions, creating an enabling environment for enterprises, making it easier to start up in business, and creating the right environment for fair competition. Procedures and processes must be simplified and time frames must be clarified for all items requiring administrative review, and cuts to government power will be made to boost market vitality.

We will take multiple measures to reform the investment and financing systems.

We will substantially reduce the number of investment projects that require government review, delegate more powers of review to lower-level governments, significantly streamline the need for preliminary review for investment projects, and conduct project reviews online. We will greatly relax market access for private investment and encourage the use of private capital to set up equity funds. The government will guide nongovernmental investments toward key projects by subsidizing investments, injecting capital, and establishing funds. We will deepen reform of railway investment and financing by making good use of railway development funds. We will actively promote models of cooperation between government and nongovernmental capital in developing infrastructure and public utilities. (mo